As at August 20,
2018. A c.0.81% increase, from$71.69pb (August 17, 2018)

Bonds

The Bond
Market traded on a relatively calm note, with yields retracing by c.6bps from
its previous session highs, as market players cherry-picked on offers, mostly
on the shorter end of the curve. We however witnessed slight sell on the 2037s
toward the close of trading, with trades at 14.96%.

With markets
closing for a 2-day break, we expect renewed demand from clients opening
Thursday, with market sentiments relatively supported by the buoyant level of
system liquidity and the slowdown in offshore selloff, noticeably absent in
today’s session.

Secondary Market Bonds

Description

Bid (%)

Offer (%)

Day Change (%)

15.54
13-Feb-20

13.98

13.56

(0.15)

14.50
15-Jul-21

14.46

13.69

(0.24)

16.39
27-Jan-22

14.55

14.14

0.04

14.20
14-Mar-24

14.83

14.53

(0.18)

12.50
22-Jan-26

15.04

14.83

(0.02)

16.29
17-Mar-27

14.99

14.92

0.00

13.98
23-Feb-28

14.93

14.90

(0.03)

12.15
18-Jul-34

14.99

14.74

0.00

12.40
18-Mar-36

15.01

14.83

(0.01)

16.2499
18-Apr-37

14.96

14.68

0.01

Source: Zedcrest Dealing Desk

Treasury Bills

The
T-bills markettraded on a relatively flat note, with most activities focused on
the shorter end of the curve, as market demand remained relatively weak despite
the significantly buoyant level of system liquidity. Yields consequently
compressed marginally by c.2bps on average.

We
expect yields to trend slightly higher on Thursday due to the anticipated
resumption in OMO auction sales by the CBN.

Secondary Market Treasury Bills

Description

Bid (%)

Offer (%)

Day Change (%)

13-Sep-18

11.00

10.00

0.45

4-Oct-18

11.25

10.50

(0.25)

1-Nov-18

12.00

11.50

0.00

6-Dec-18

12.10

12.00

(0.15)

3-Jan-19

12.40

12.15

0.05

14-Feb-19

12.45

12.20

0.05

14-Mar-19

12.20

11.90

(0.10)

4-Apr-19

12.15

11.60

(0.05)

18-Jul-19

12.00

11.45

(0.14)

Source: Zedcrest Dealing
Desk

Money Market

The OBB and
OVN rates remained at single digit levels, closing today at 8.83% and 9.58%
respectively. This was as the buoyant level of system liquidity supported
outflows for today’s wholesale FX provisioning of c.N70bn. System liquidity is
consequently estimated at c.N400bn as at close of business today.

We expect
rates to remain at single digit levels for the rest of the week, with inflows of
c.N364bn from OMO maturities expected on Thursday.

Money
Market Rates

Current (%)

Previous (%)

Open
Buy Back (OBB)

8.83

7.33

Overnight
(O/N)

9.58

8.33

Source: FMDQ, Zedcrest Researc

h

FX Market

The Naira/USD rateremained
unchanged at the interbank and I&E FX window, closing at N306.10/$ and
N362.50/$ respectively. At the parallel market, the cash and transfer rates
also remained unchanged at N359.50/$ and N362.00/$ respectively.

FX Market

Current (N/$)

Previous ( N/$)

CBN
Spot

306.10

306.10

CBN
SMIS

352.00

352.00

I&E
FX Window

362.50

362.50

Cash
Market

359.50

359.50

Transfer
Market

362.00

362.00

Source: CBN, FMDQ, REXEL BDC

Eurobonds

We witnessed
relatively moderate interests on the NGERIA
Sovereigns in today’s session, as yields declined by c.7bps on average. The
most interests were on the Jun 2032 and Nov 2047 bonds which gained +0.50pct
and +0.60pct respectively.